Saturday, 5 October 2013

How to increase Your Credit Rating for a Better Life?

Having a good credit score is important and vital not only for applying for loans and getting approved for it, but also for getting success in the various walks of life. You can get approved for big loan deals easily if you are carrying a perfect credit standing.

Millions of people around the world are the victims of poor credit profiles and are the denied for loans when they need funds for meeting their essential financial needs. Such people can easily make corrections in their credit profiles if they take following steps-

1. Avoid all late payments and delayed clearance of bills- This is the main reason of why people become a bad credit borrower. Skipping a loan repayment means the financial condition of loan applicants is not healthy and the chances of the recovery of loaned money are slim. So, make sure you pay off the loan at the right time of loan repayment and clear all your bills at the appropriate time which is helpful in making your credit score is good.

2.Avoid applying for loan application frequently- Many people have the habit of applying for loans for too many times which cause them problems in loan repayment and their credit goes down. The needy people must try to meet their all essential needs with the own resources, savings, monthly earnings and avail loans only in the condition of the dire needs of cash and unavailability of the other sources of funds.

3. Make sure low outstanding balance in card- High outstanding balance on debit your debit card can drop off the credit score. So, try to keep your debt balance low as much as possible.

4.Avoid the closing of unused accounts or credit cards- You should avoid closing unused accounts or credit cards as it will not assist you to increase the credit score.

5. Avoid opening unnecessary accounts with an intention of increase in credit score- The strategy of opening up new bank accounts and having a new credit card actually lower the credit score. So, avoid this harmful practice as soon as possible to stop decline in your credit scores.

6. Be a constant individual for good credit rating- Try to be constant person in terms of employment, residence and bank accounts. Changing all these things affect your credit score negatively and makes you a risky loan borrower.